Food Coloring Concentrates Market Trends – Global Outlook and Forecasts to 2025

Posted by PRIYANKA KULKARNI on March 19th, 2020

Market outlook:

Food coloring concentrates are made from edible fruits, vegetables, and other edible plants. Food coloring concentrates are used in food and beverage products to enhance their appearance. As food coloring concentrates are colors extracted naturally through a limited physical process. Food coloring concentrates are classified as food ingredients and not as food additives. Even added principally for food coloring purposes. It is generally labeled as food ingredients under the clean labels by European Legislation. The short process which food coloring concentrates go keeps the coherence of the raw material and preserves nutritive properties. The global demand for clean labels is rising in the food and beverage industries. Thus leading key players in food and beverage industries like Nestle, Kraft’s and General Mill’s to shift from certain addictive colorants, preservatives, and flavors to natural ingredients. This has made key players like GNT, Doehler, Klasec in food coloring concentrates market to move towards a competitive market. The food coloring concentrates market is going to be a lucrative market for the manufacturer, due to an increase in the awareness in the consumer of the health benefits from natural food coloring concentrates and ban on the use of addictive during the production of food and beverages. The food and beverage companies are now supporting the move of coloring food by the European Union globally. There is an increase in the growth of the food coloring concentrates in Europe, America, Asia-Pacific and Latin Middle East & Africa. The food coloring concentrates market is still on the roadblock when it comes to cost and stability of colors.

Consumers are demanding food color as ingredients in their food and beverage:

Consumers are showing a high demand for naturalness in food. Consumers want transparency in food and beverages they eat and want to know where it has come from and ask for natural and low-processed products. Food and beverage companies already begin to transform by keeping all the manufacturing, processing, packaging and labeling activities transparent to the consumers. This leads to a rise in demand in consumers for color concentrates which are less processed than the highly processed organic colors. Consumers aren’t so much demanding natural colors, as much as they are choosing products that do not include artificial colors. Consumer Preference for food free from artificial colors has risen demand for organic food and beverages. Thus driving the growth of the food coloring concentrates market.  Also, the rising trend of health benefits from organic food and beverages has influenced the demand for natural food coloring concentrates such as beetroot, tomato, and carrot. This is rising as an alternative to other natural colors used in food and beverages. Clean labels have made consumer more aware of the natural colors in the food and beverages. Consumers are now differentiating in natural colors and concentrates. Regulatory bodies mandating E number for natural colors has increased the demand for food color concentrates in the labeling of food and beverages. Driving the growth of the food coloring concentrates market. For food coloring concentrates stability and brightness of the color for the food and beverages are the main restrains. Although companies are experimenting with various fruits and vegetables to obtain highly concentrated color. Like White color, made from rice starch and Calcium Carbonate, which provides intense white color.

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Opportunities for Market Participants

The food coloring concentrates category is an attractive market for business. The food and beverage industry is in growth stages which surge the need for the new and innovation in the food coloring. This creates an opportunity for companies to innovate in food coloring concentrates. Food color concentrates can be used as a great branding opportunity by the food and beverage companies for promoting products containing food coloring concentrates as ingredients. Companies are limited in varieties of natural colors which can be an opportunity for the companies to introduce new food coloring concentrates by conducting different experiments from different types of fruit, vegetables or plants. Consumer’s associate E numbers on packaging for natural colors with additives in food labels. This confusion in consumers has led to the manufacturers for opting for food coloring concentrates to substitute natural colors to avoid the need for labeling mandates. This has created an opportunity for food coloring concentrates providers. The Government has banned manufacturing and trading of synthetic colors at various countries like Europe and Japan. This has increased the demand for natural color as alternatives. Driving the demand for food coloring concentrates and creates a great opportunity in Japan and Europe for the food coloring concentrates market.